The State Council has "in principal" approved draft rules that require overseas banks to be incorporated locally to fully tap the retail Yuan business in China.

The central government said on its Website it was necessary to stipulate the rules on overseas banks to boost a stable and healthy operation in China.

The State Council will release the rules after making some amendments on the draft, the statement said. Rules requiring foreign banks to incorporate locally before they can offer bank cards and Yuan-denominated deposits services will be implemented by December 11, an official of the banking regulator said in October.

Passing the rule by that date should be no problem, Xu Feng, director of the banking supervision department at the China Banking Regulatory Commission said then.

China is set to open its retail yuan business to overseas banks on December 11 under its World Trade Organization commitment. Overseas banks that don't incorporate locally will need three times more capital to offer yuan services to local individuals in the country. Overseas banks that don't incorporate locally can only take fixed deposits of more than one million Yuan (US$12,658), the draft said.

Source:佚名